What does it look like when one of the world’s most longstanding institutional investors ($120B) decides to go deeper into venture capital? And what happens when one of the most respected LP teams in the business joins forces with them?

Thomas Kristensen, who is responsible for the venture capital business at LGT Capital Partners, joins hosts Nick and Beezer for a wide-ranging conversation that doubles as an announcement: the Sapphire Partners team – including Beezer, Laura and Nate – have joined LGT Capital Partners. Thomas explains why the fit made sense.

LGT Capital Partners manages over $120 billion on behalf of more than 700 institutional clients and is owned by the Princely Family of Liechtenstein. That ownership brings a long-term perspective, often measured in decades rather than years, and it shapes how Thomas and his team approach venture: with patience, close partnership and a willingness to be both buyer and seller in private markets.

Together with Nick and Beezer, Thomas unpacks the firm's recently published white paper on the case for increasing venture allocation, built on three pillars: lifecycle diversification, an innovation hedge against AI-driven displacement and the maturation of secondary markets as a liquidity tool. He also offers a frank assessment of the current market, noting that the pace of deployment feels reminiscent of 2020-2021, and that a valuation dip may be coming regardless of how transformative AI ultimately proves to be.

From the endowment model's stress test to the temptation of clinging to a single fund-returner, this is a thoughtful conversation about long-term thinking from an investor who has spent more than two decades refining his approach.

Quotes

“It’s not new that incumbents are challenged by new entrants. I think what’s new is the speed at which this is happening. In the age of AI, it feels like there is a risk that many incumbents could be displaced quite quickly. And so including venture capital in your portfolio is a way of hedging against this.”

Time Stamps

04:13 Meet Thomas Kristensen, Head of Venture Capital at LGT Capital Partners

05:52 The Princely Family of Liechtenstein and the Long-Term Mindset

08:37 The White Paper: Why LGT Capital Partners Is Increasing Its Venture Allocation

09:45 Three Pillars: Lifecycle Diversification, Innovation Hedge, and Secondary Markets

12:35 Big News: The Sapphire Partners Team Joins LGT Capital Partners

17:35 LP Consolidation: What It Means for GPs

23:47 GP Advice: Keep First Things First on LP Alignment

32:03 Engineering a More Liquid Private Portfolio

37:07 AI Market Heat and Fundraising Pace

45:44 Closing Remarks and What’s Next

Links

Connect with the guest and hosts on LinkedIn!

• Thomas Kristensen

• Beezer Clarkson

• Nick Chirls

Learn more about:

• LGT Capital Partners

• Asylum Ventures

• OpenLP

• LGT Venture Capital White Paper

Opinions expressed by participants are their own and do not reflect the views of LGT Capital Partners, Asylum or its affiliates. The content does not take into account your specific investment objectives, financial situation, or needs, and is not intended as a recommendation, an offer, solicitation of an offer, public advertisement or recommendation to buy or sell any investment or other specific product. Information is based on sources believed to be reliable, but no warranty is given as to accuracy or completeness, and it should not be relied upon. Alternative investments are speculative, involve complex instruments, and carry a high degree of risk. Investments and strategies discussed may fluctuate in value and may not be suitable for all investors. Past performance is not indicative of future results. Listeners should make their own independent investment decisions. No funds are being discussed on this podcast.